Author name: exchangemsia_admin

Sarawak-based diversified group W T K Holdings Berhad (“WTK” or “the Group”) has announced that its wholly owned subsidiaries, Biogrow City Sdn Bhd (“BCSB”) and Bioworld Synergies Sdn Bhd (“BSSB”), have entered into conditional share sale agreements for the proposed disposal of their respective interests in Biogrow City Plantations Sdn Bhd (“BCPSB”) to Rimbun Temasek Sdn Bhd for a total cash consideration of RM90.0 million (“Proposed Disposals”). BCPSB is principally involved in the planting and management of an oil palm plantation, as well as the operation and management of a palm oil mill in Limbang, Sarawak. Its assets comprise five parcels of plantation land measuring 3,487 hectares, of which approximately 1,314 hectares are planted, and one 30 metric tonnes (MT) per hour crude palm oil mill. The Proposed Disposals comprise: the disposal by BCSB of 8.5 million ordinary shares, representing an 85.0% equity interest in BCPSB, for a consideration of RM65.6 million; and the disposal by BSSB of 24.4 million redeemable preference shares in BCPSB, for a consideration of RM24.4 million. The Proposed Disposals are expected to result in an estimated gain of RM72.7 million to the Group. The Proposed Disposals form part of WTK’s ongoing efforts to unlock value and enhance its asset portfolio, improving resource allocation across the Group. Biogrow’s plantation and mill are located far from WTK’s main plantation operations in Miri and Bintulu, resulting in lower economies of scale, higher transportation costs, and difficulties in recruiting manpower for the estate. In addition, the plantation’s steep and challenging terrain contributed to low tree standing and subpar fresh fruit bunch yields. Meanwhile, the palm oil mill has also been operating below capacity. Executive Director of WTK, Francis Lai, said: “The Proposed Disposals provide the Group with an opportunity to unlock value from underperforming assets that are also geographically distant from our main plantation clusters. “For clarity, plantation remains a key business segment for WTK. However, Biogrow’s plantation assets have been challenging to optimise due to its location, terrain, and limited availability of surrounding third-party fresh crops to support mill utilisation.” “Hence, the Proposed Disposals will allow us to further enhance our plantation portfolio performance, especially following the earlier addition of two oil palm plantations and one palm oil mill in April 2026 that have better yields and production output. “The RM90.0 million cash proceeds will strengthen our balance sheet, improve our financial flexibility, and provide additional working capital as we continue to build a more resilient and sustainable earnings base,” he added. “As we move forward, we continually assess our asset base with the aim to unlock value from non-core or sub-optimal assets while seeking out earnings-accretive acquisition targets. “With concerted efforts to optimise our plantation portfolio, coupled with the good progress from our food and tapes segments, we are confident of building a stronger, more resilient Group capable of delivering consistent returns to shareholders,” Francis Lai concluded. The Proposed Disposals are not subject to the approval of WTK’s shareholders. Barring any unforeseen circumstances and subject to the fulfilment of the relevant conditions, the transaction is expected to be completed in the fourth quarter of 2026.

Supermax Corporation Bhd’s associate company, Supermax Brasil Importadora S/A (Supermax Brasil), plans to establish a medical glove manufacturing facility in Paraná, Brazil, with a total investment commitment of about 250 million Brazilian Real (US$50 million). Supermax said the investment marks a major step in the group’s international expansion strategy and strengthens its presence in the Latin American healthcare and industrial markets. The group noted that Brazil offers strong long-term growth potential due to its expanding healthcare sector, rising regional demand for medical and industrial gloves, strategic access to the Mercosur market, and government initiatives aimed at boosting local manufacturing while reducing reliance on imports. The project will involve the development of an integrated manufacturing facility with flexible production capabilities designed to serve both healthcare and industrial markets across the region. Supermax Brasil is currently working closely with Brazilian authorities and stakeholders to support the project’s implementation and the development of a local manufacturing ecosystem. The company also plans to expand its market reach into Mercosur associate member countries, including Chile, Colombia, Ecuador, Guyana, Panama, Peru and Suriname. Supermax said the investment will be carried out in two phases. The first phase involves an initial investment of about 150 million Brazilian Real (US$30 million), which will be funded through internally generated funds and retained earnings. The second phase will focus on future expansion to support rising regional demand and market growth. Separately, Supermax reported a wider net loss of RM41.14 million for the third quarter ended March 31, 2026, compared with RM23.81 million a year earlier. Revenue declined to RM126.76 million from RM203.67 million, mainly due to the stronger ringgit against the US dollar and lower average selling prices. For the first nine months of the financial year, the group’s net loss widened to RM234.19 million from RM93.35 million previously, while revenue fell to RM519.76 million from RM627.11 million. Despite ongoing cost pressures, Supermax said it remains optimistic about its outlook, supported by resilient healthcare demand and improving overseas market conditions. The group added that it is working towards a turnaround and expects to return to profitability in the second half of 2026.

Mudajaya Group Bhd’s indirect wholly owned subsidiary, Xelmont Ltd, is selling its 45% stake in Real Jade Ltd to Minyi Holdings Ltd (MHL) for HK$234 million (RM118.45 million). In a filing with Bursa Malaysia, Mudajaya said the disposal proceeds will mainly be used to offset debt owed to MHL, which amounted to HK$244.97 million as at April 30, 2026. The group added that the remaining balance of HK$10.97 million, along with the related interest, will be settled in cash. Mudajaya said the disposal allows the group to unlock part of its investment in Real Jade while still retaining a controlling stake in the company. This will enable the group to continue benefiting from any future growth and operational improvements at Real Jade.

Big Caring Group Bhd, Malaysia’s largest pharmacy chain operator, is reportedly seeking to raise up to RM3 billion through a planned initial public offering (IPO), potentially making it one of the country’s largest listings in recent years. According to sources familiar with the matter, the pharmacy retailer is targeting a listing by October this year. Discussions remain ongoing and details, including the IPO size and timeline, could still change. Backed by private equity firm Creador Sdn Bhd, Big Caring plans to offer up to 25.5% of its enlarged share capital in the listing. Part of the proceeds raised is expected to be used for debt repayment. The planned IPO comes amid a strong year for Malaysia’s capital market, with around RM5.6 billion raised through IPOs so far in 2026. Among the largest listings this year was Sunway Healthcare Holdings Bhd, which raised RM3.3 billion in March after exercising its over-allotment option. Big Caring currently operates several well-known pharmacy brands, including Big Pharmacy and Caring Pharmacy, with a combined network of 626 outlets nationwide, according to its prospectus. The company also plans to expand aggressively by opening around 40 to 50 new outlets annually over the next three to five years. Creador, which invested in the company in 2015, currently owns about 34% of Big Caring and is expected to sell up to 14.8% of its stake through the IPO exercise. The company was founded by Lee Meng Chuan and Lim Sin Yin, who remain significant shareholders in the business. Big Caring did not respond to requests for comment on the proposed listing.